Boettke on Katrina and the Economics of Disaster

Pete Boettke of George Mason University talks about the role of government and voluntary efforts in relieving suffering during and after a crisis such as Katrina. Drawing on field research he is directing into the aftermath of Hurricane Katrina, Boettke highlights the role of what he calls "civil society"--the informal, voluntary associations we make as individuals with each other to create community.

Highlights

What is an Austrian economist? Definitions of methodological individualism and market process.

5:08

Biology vs. physics. Complex, evolving-systems approach

7:36

Main line vs. mainstream. Self-correcting properties of the market

10:26

Katrina Project at Mercatus Center: J. S. Mill remarked: it's amazing how speedily countries recover. What conditions contribute to a speedy recovery after a crisis? Free flow of labor and goods. Three aspects like legs of a stool: How robust in the face of disaster are

1. the political and legal structures;2. the social and cultural structures;3. the economic and financial structures?

"If gov't doesn't do it, it won't get done" is a whole way of thinking. Imperfect alternatives, but which generate better results? Intentions inferred from outcomes. Polanyi, chess example. Adjustments necessary. Creativity within discipline. Grover Cleveland example; if government steps in, private institutions disappear. Government behemoth vs. knowledge of time and place. Russ Sobel.

46:01

Does pushing decision-making to state and local level work? New Orleans example--bad public policies. Hirshleifer.

48:02

Rebuilding phase after disaster: Does government do better then? Contradictory incentives laid out by government. J. B. Say. Bastiat's Petition by the candle-makers. Individuals who bucked the government have achieved most: school example. Vietnamese community in east New Orleans. Moral hazard. Flood plain: why were those regions developed? Subsidies. Regime uncertainty, conflicting policy.

56:47

Rich-poor distinction. Did rich neighborhoods get around regulations better than poor neighborhoods and thus rebuild faster? No. Rich neighborhoods had people with other assets, not just their homes. Flood maps, insurance, out-of-state contractor licensing restrictions.

Comments and Sharing

Another thought provoking and great podcast. Professor Boettke mentioned a book on economic thinking he was involved with, could you post it's name? Also he mentioned (recommended) a book by Richard Posner where he discusses "low hanging fruit". Any clue as to it's name. Prof Posner has a lot of books and my budget is of church mousely proportions. :)

The Boettke book is The Economic Way of Thinking. You can find it on the web. New, it's very expensive but you can find a used copy or an older edition on the web as well. I'm not sure about the Posner book. I'll find out.

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